Oil may hit ‘$105 a barrel’

THE cost of crude oil rose yesterday after an investment bank spooked the market with a warning that prices could surge to $105 a barrel.

Goldman Sachs - one of the world’s biggest traders of energy futures - said markets had entered a period where strong demand and tight supplies could cause a “super spike” in prices.

The report stoked concerns that rising oil consumption in the United States may erode oil stocks, ensuring crude prices rose 24 cents to $55.64 a barrel yesterday.